Airline Industry Study Defends Orbitz Project

Published: 16 March 2001 y., Friday
"New entrants in travel distribution are being met with substantial opposition from the old guard and from leaders in the online travel marketplace," the report says. "More specifically, the agency community is opposing consumer-direct distribution by travel suppliers, and in particular, attempts to aggregate multiple suppliers onto a single site." Published by Global Aviation Associates, the report accuses the travel-booking industry of mounting a concerted and well-funded lobbying push against Orbitz, in order to protect its profit margins. The report "does restate the idea that Orbitz is bringing some needed competition" to the industry, Orbitz spokesperson Stacey Spencer said today. But travel agents haven't been the only Orbitz detractors. Since news of the airline industry joint Internet venture first surfaced in 1999, consumer advocates, travel industry groups and regulators have expressed concern about the proposed project. A collaborative effort owned jointly by American Airlines, Delta Air Lines, Continental Airlines, Northwest Airlines and United Airlines, Orbitz intends to offer a one-stop-shop for online ticketing. By obscuring the need for travel "middlemen" Orbitz could squeeze other competitors out of the market, Orbitz detractors contend. The Orbitz-funded report goes on to accuse operators of travel industry "global distribution systems" (including Travelocity.com owner Sabre Inc.) of maintaining artificially high ticket-booking prices, in a bid to pad their own profits. The underlying costs for running those systems, which coordinate ticket sales across huge networks, have dropped as prices for computer technology and telecommunications services have fallen. Still, prices associated with global distributions systems (GDS) actually have increased, the report said.
Šaltinis: Newsbytes
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

Intel To Beef Up Facilities in Ireland

Intel envisions leading-edge chip production to begin at Fab 24-2, its new facility in Ireland, by 2006 more »

Transmeta Joins Microsoft's 'NX' Club

Transmeta will add a new antivirus technology standard to its next round of low-power chips, the company said Monday more »

Welcome summer with the new “Skynet” entertainment

There is plenty of entertainment on „Skynet“ network that are designed for the users of the inside network. One can watch stereo quality video recordings and listen to Internet radio with the help of the high-speed Internet. And there are more... more »

Net portal wars

Rivals Yahoo and Google launched assaults on each other's territory as the fight for the Internet search dollars heated up more »

The deal

Ruling delayed on huge Microsoft attorney fees more »

Diebold finds e-voting business stormy

After the Florida punch-card debacle hurt the credibility of the last presidential election, ATM maker Diebold decided it should expand into electronic voting more »

EC opens ears on e-money directive

The European Commission has opened a consultation period on its controversial "e-money" directive more »

Ready, Willing & Able

Fujitsu Siemens Computers plans to considerably strengthen its position on the Polish information technology market by taking advantage of opportunities offered by Poland's accession to the European Union more »

Estonia embraces web without wires

There is a new revolution brewing along Tallinn's ancient stone streets and inside its charming Gothic buildings. more »

Web services find way to devices

New Web services technology makes it easier for users to connect devices over a network more »